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Good morning and welcome to The Downshift, or TDS for short.

Quick, dense, and short, TDS gathers the latest automotive headlines from around the globe and places them in one spot. Stories are summarized in a single sentence accompanied by a link for those seeking more information.

The first cup of coffee is gone, and a second is needed. Let’s get into it.

What I’m driving: Spending the week with the 2026 Lexus GX and am truly interested to see how I feel about this thing after the weekend and a road trip up north. At the launch, in a short, curated session I loved the GX and felt it challenged the Land Rover Defender, but after spending a week with it road tripping and towing in the real world I found it loud, crude, thin, and annoying despite it’s gorgeous design. It’s been two years, let’s see how things shape up this time in a new timeline.

After bailing on the electric future and taking a massive loss Honda America planning chief Gary Robinson said hybrids will form the “core” of the automaker’s business and are now expected to overtake pure gas-powered vehicle sales later this decade; Acura’s lineup will shift to be almost all hybrids while Honda’s showroom will be a little more selective on which vehicle gets which powertrain.

Jeep recalled 61,711 Cherokee SUVs because the two-speed power transfer unit in the transmission might experience catastrophic failure.

BMW is working on a less expensive Neue Klasse EV that will wear the 1 Series nameplate.

Tesla raised Model Y prices by $500 to $1,000.

The 2027 Volvo EX60 lineup was priced with a 300-mile variant costing less than $60,000; the electric EX60 also costs less than a comparable plug-in hybrid XC60 model.

Congress now wants you to pay $130 a year to drive an electric car; lawmakers say EV drivers have to “pay their fair share” since they won’t be paying a gas tax, though many states are already charging EV drivers a fee to compensate for the lack of gas tax income.

Volvo confirmed the now dead EX30 will be replaced with an affordable, larger, EV next year; the replacement is expected to wear the EX40 badge.

BYD aims to take on the Land Rover Defender with the Ti7 seven-seat hybrid SUV in the UK later this year.

Ford’s set to launch five “rally-bred” cars in Europe by 2029.

Got a news tip or feedback? Drop us a line at tips@thedrive.com

Keeping tax cuts for electric cars and reintroducing state-based rebates could help more Australians avoid rising petrol prices and should be treated as a national security issue.

Automotive groups issued the call to governments on Friday as fuel prices reached almost $4 a litre in some parts of Australia and conflict in the Middle East continued to strain worldwide oil supplies.

Encouraging more motorists to adopt electric vehicles would not only help to extend Australia’s fuel reserves, they say, but could also accelerate progress towards 2035 environmental targets.

The call comes after sales figures revealed a record number of Australian drivers invested in EVs during February, and as the federal government reviews the Electric Car Discount introduced in 2022.

The discount removes fringe benefits tax from the price of some electric cars purchased through novated leases, and has been used by more than 114,000 Australians – significantly more than anticipated.

While critics have argued the discount should be discontinued, Electric Vehicle Council chief executive Julie Delvecchio said worldwide fuel volatility proved the opposite.

“Every time there is a conflict in oil-producing regions, Australians pay the price,” she said.

“The latest spike underscores a simple truth: as long as Australia relies on imported oil, households remain exposed to global shocks beyond our control.”

As well as retaining the tax discount, Ms Delvecchio said state governments should reinstate rebates offered for the purchase of electric cars to help households reduce their spending.

“Electric vehicles help families cut their transport costs by up to $3000 a year, and most of that saving comes from avoiding the cost of petrol, which is currently over $2 a litre,” she said.

“Supporting EV uptake is not just climate policy or industry policy, it’s national security policy.”

Submissions into the Electric Car Discount review closed on February 6 but recommendations are not expected until 2027.

Australia’s national petrol stockpile sat at 36 days’ supply, Energy Minister Chris Bowen said, as well as 34 days worth of diesel.

Retaining a tax cut for electric cars could help to extend that supply, National Automotive Leasing and Salary Packaging Association chief executive Rohan Martin said, as well as lowering carbon emissions.

“Helping more Australians afford cleaner, cheaper-to-run cars makes sense,” he said.

“More EVs are in the national and household interest.”

Electric cars made up 11.8 per cent of new car purchases in February, according to figures from the council and Federal Chamber of Automotive Industries, up from 5.9 per cent in 2025.

AAP